Motion Picture Herald (Oct-Dec 1956)

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Appeals Court Finds For National Screen Set Fund to Aid Italian Producers . . . U. S. Circuit Court of Appeal reverses summary judgment of lower court in anti-trust case brought by 7 poster renters PHILADELPHIA: The United States Court of Appeals here last week reversed the decision of lower courts against National Screen Service over an anti-trust suit brought by seven poster-renters, issuing a unanimous opinion in favor of the company. The lower courts had granted summary judgment against National Screen with respect to its exclusive contracts with distributors for standard accessories. The appellate court ruled that the contracts were not illegal and that the company’s business growth to national predominance “was not illegal in itself.” Not a Monopoly The seven poster-renter plaintiffs were Charles Lawlor of Philadelphia; Morris J. Lipp of Chicago, Benjamin Siegel of Washington; Jay Schrader of Charlotte; Dave Mitchell of Dallas; Jacob Riff of Boston, and Harry Vogelstein of Washington. The upper court said in its opinion: “Exclusive claims are not per se violations of the anti-trust laws and we are not permitted in circumstances where the facts disclose a course of conduct and reasonableness of ation not prohibited by the anti-trust laws.” The court held that even a dominant position by the company does not make it a monopoly if it reached that position by natural economic growth. In analyzing the growth of National Screen, the superior court referred to affidavits of motion picture distributor executives. The business men stated to the court that, prior to National Screen’s stepping into the standard accessory field, a number of producers who had made their own accessories had lost money. Cited Affidavits On the matter of exclusive contracts between National Screen and producers for the privilege of manufacturing standard accessories, the court found that these agreements were made over a period of different years and independently of one another. The opinion cited affidavits that “clearly indicate that each producer-distributor entered into its agreement with National Screen independently for legitimate business reasons related to its own enterprise.” The court directed costs to be paid to National Screen by the poster-renters, and dismissed the appeals which the plaintiffs had taken from certain parts of the lower courts’ judgments. The court sent the case back from trial. Louis Nizer and Walter S. Beck represented National Screen on the successful appeal. Carolina Meet November 25 The Theatre Owners of North and South Carolina will hold their 44th annual convention at the Hotel Charlotte, Charlotte, N. C., November 25-27, it is announced by Jack D. Fuller, president of the association. Co-chairmen of the convention committee are Howard B. McNally of Fayetteville, N. C. and R. L. Baker, Jr. of Gastonia, N. C. Assisting them are: Ernest G. Stellings, in charge of clinics; C. P. Freeman, Jr., entertainment; F. H. Beddingfield, exhibits; Mrs. Runa C. Greenleaf, ladies’ activities; and L. L. Theimer, publicity and talent. The reception of those registering will be handled by Roy Rowe of Burgaw, N. C., and J. J. Kime of Roseboro, N.C. Ulmer C. Eaddy of Charlotte will handle hotel reservations and convention registrations, it is announced. Registration commences at noon November 25, with the afternoon devoted to a directors’ meeting and a social hour hosted by C. J. Mabry, president, and R. L. Simpson, manager of Motion Picture Advertising Service Company. Among the features over the three-day period are showmanship clinics, forums on advertising and concessions and activities of drive-in and small indoor theatres. Prominent speakers, to be announced at a later date, will address the delegates. Climaxing the threeday affair will be the annual president’s banquet and dance to be held in the hotel ballroom. NT A Sells 20th-Fox Films In 140 Television Markets The 20th Century-Fox package of 52 pre-1948 feature films has been sold by National Telefilm Associates in over 140 television markets in the United States, according to Harold Goldman, NTA vicepresident of sales. The NTA official said that the 20th-Fox package has brought in over $3,500,000 in sales thus far. ROME: A bill introduced by the president of the cabinet council, Antonio Segni, authorizes the establishment of a government fund to aid producing and distributing companies which are in financial straits. The bill, dated October 15, was just published in the Official Journal. The fund, which will be administered by the Banca Nazionale Del Lavoro is made up of a 36 per cent share of the $8,800 compulsory deposit made in the same bank for each foreign picture dubbed into Italian. The fund will be employed to grant loans to companies distributing or producing domestic Italian pictures which are facing a bad financial situation. The loans will be granted not only on the ground of the statement of accounts but also considering the good will or background, of the company. The fund can be used also to grant collateral to other banks from which the insolvent companies borrow money, and finally also to guarantee creditors of insolvent companies. The rate of interest of the loans granted on the fund cannot be more than four percent, which is half the usual rate charged by the Italian banks. AB-PT Gets Extension On Theatre Disposal WASHINGTON: The Justice Department has given American Broadcasting-Paramount Theatres another extension of time in which to dispose of 22 theatres requiring divestiture under the terms of the Paramount consent decree. The deadline was moved from November 5 to January 15. The company is currently in the process of disposing of another theatre, with divestiture expected by November 5. According to the Justice Department, the extension was granted because of the complexities involved in disposing of the 21 theatres in the Maine and New Hampshire Theatres Company, in which AB-PT owns a 50 per cent interest. The company is the only one of the five major companies involved in the Paramount case which has not yet completed divestiture. Originally it had the largest number of theatres — 774 — to divest. SMPTE Demonstration The Society of Motion Picture and Television Engineers, New York Section, will witness a demonstration of a new intermediate positive-duplicate negative system November 15 at the 20th Century-Fox home office, 444 West 56th Street. 30 MOTION PICTURE HERALD. NOVEMBER 3, 1956